Katherina Reiche: Crisis aid for the Minister of Economics


Federal Minister of Economics Katherina Reiche (CDU) has been receiving advice from two communications agencies for several weeks in order to improve the ministry’s public appearance. The agencies Scholz & Friends and FGS Global have been supporting public relations since February, the ministry told ZEIT when asked. The agreement was put out to tender across Europe after a contract expired. The ministry does not want to comment on the scope and remuneration “to protect confidential data”.

Scholz & Friends is a well-known media agency that was responsible for campaigns such as “Land of Ideas” and already advised Reiche’s predecessor Robert Habeck. FGS Global is also a well-known PR agency from Berlin that specializes in strategic communication and is considered close to the CDU. Organized just last year the company the initiative “Made in Germany” and a summit in the Chancellery at which companies announced billions in investments in Germany. The company’s partners include Joachim Koschnicke, who managed the election campaign for then Chancellor Angela Merkel in 2017.

A spokeswoman for the ministry emphasizes that it is quite common for ministries to bring in external support from agencies. The press office continues to organize press work, but a communications agency usually also provides strategic advice on which topics a minister should address and how – and which not.

There is clearly some catching up to do here. Reiche is repeatedly criticized, especially after public appearances like at the beginning of March in the Report from Berlinas she answered questions in phrases. From the point of view of her critics, Reiche makes numerous suggestions regarding the economic transition, but not necessarily on topics for which she is responsible. In addition, important but also extremely controversial laws are currently being worked on in your house, such as the Building Modernization Act, better known as the “Heating Act”, a package for the electricity grids and a reform of green electricity subsidies.

Press office without management

The LB department in particular, where public relations and press work is located, has not calmed down since Reiche took office. The press office has already had to cope with the departure of several speakers. The current head of the press department, Birgit Korte, who only took over the job in November last year, will soon be leaving her post. This means that the minister is temporarily missing her personal spokesperson – which is extremely unusual.

Reiche has long been criticized for her defensive press work. The usual background discussions with journalists have hardly taken place so far. She doesn’t always allow herself to be accompanied on long trips abroad. When she flew to Washington to take office in June last year, she didn’t take any business or media representatives with her – which is extraordinary. She was also not accompanied by any press representatives on her most recent trip to the CeraWeek energy trade fair in Houston, Texas, earlier this week. It took a while after the start of the Iran War, when stock market prices for oil and gas skyrocketed and citizens immediately felt the consequences at the gas station almost a week before she appeared in public, to explain the situation and carry out crisis management.

Internal information becomes public

In addition, there are always reports about draft laws and personal details in the media. Two weeks ago reported about this Mirrorthat the ministry had “randomly” examined email accounts of officials in search of leaks. The opposition also criticized Reiche’s trip to a discreet economic summit in Austria and quoted her for a questioning before the Economic Committee of the Bundestag. Ministry employees have been reminded several times in recent months of the usual rule not to speak to the press without prior consultation. There are also numerous personnel changes and departures at management level. In addition, communication between the ministry and business also seems to be poor: representatives of associations and companies that work with the public relations department have repeatedly criticized the high level of coordination required in the ZEIT. However, no one wants to be quoted by name.

The good news is: the work of the communications agencies is apparently beginning to bear fruit. The minister has been noticeably more present in public for a few weeks: Reiche now regularly invites people to press conferences and confidential background discussions in the ministry. The number of postings on social networks has also noticeably increased.

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